But while the pharmaceutical forecast remains low, it is anything but unhealthy.

Based on a Packaging Machinery Manufacturers Institute (PMMI) survey, the pharmaceutical industry is expecting only up to a four per cent increase in its buying of machinery - the most optimistic out of all the market segments.

The PMMI report, conducted after a survey of 468 decision makers responsible for 7,160 packaging lines in 1,073 plants located throughout the US, estimates the overall purchasing of packaging machinery in the US to conservatively increase by 1 per cent to an estimated value of $6.27bn.

The pharmaceutical industry forecast is up on the one to three per cent growth that was projected for 2006, and while four per cent growth seems relatively low, PMMI vice president of member services Matthew Croson called the figures "healthy" and "solid".

"It's an industry where they can't really hold back because they're in a competitive industry," he told US-PharmaTechnologist.com.

Meanwhile, the forecast for the pharmaceutical industry, and packaging industry in general, still reflects a cautionary reaction to the uncertainty of the direction of the US economy, as a declining housing market, higher than preferred inflation rates and a tapering off of consumer spending dots the economy's horizon.

While financial imperatives have not been a strong reason for the slowing down, with many companies flush with money, the pharmaceutical industry being no exception, factors such as high energy and manufacturing costs and intensified competition at home have thought to have contributed.

Likewise, companies are holding off on expansions and upgrades until the economy's direction becomes clearer, while streamlining and increasing the efficiency of the packaging line is at the forefront of manufacturing operations in 2007, the authors state.

Though a leveling off could be seen as grim, Croson said there was nothing to worry about.

"What we're seeing right know is simply caution in the market place. No one around here is worried about it. There's a lot of cash companies are holding onto. People are just taking some time here to reflect on what they want to do and their putting capital equipment expenditures on hold."

One trend is an increasing view of companies to look at emerging markets overseas to fight price wars and market competition. The current pharmaceutical packaging business in Asia stands between four and five billion dollars. India alone is standing at the $60m mark.

Beside the pharmaceutical industry, the packaging market segments in the survey included: beverages; chemical products; consumer, commercial and industrial durable hard goods; foods; paper products, textiles, soft goods and other non-durables; personal care products; and converters and printers.